What is expected in the development of USDT?
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What updates are there in the USDT code base?
Tether has recently updated its technology to better connect with Bitcoin and simplify support for different blockchains.
- Bitcoin Integration with RGB (August 28, 2025) – This update allows USDT to be sent directly on the Bitcoin network, offering improved privacy and faster transactions.
- Ending Support for Older Blockchains (July 11, 2025) – Tether stopped supporting USDT on five less-used blockchains to focus on more popular and efficient networks.
Deep Dive
1. Bitcoin Integration with RGB (August 28, 2025)
What’s happening?
Tether is launching USDT on Bitcoin using a technology called the RGB protocol. This means users can hold and transfer USDT directly on Bitcoin’s network, benefiting from Bitcoin’s strong security. The RGB protocol also supports private transactions and works with the Lightning Network, which allows for quick and low-cost payments.
Why it matters:
This update makes USDT more useful on Bitcoin by enabling secure and private transfers that feel native to Bitcoin’s system. It could attract more users who want stablecoins with Bitcoin’s security and help grow decentralized finance (DeFi) applications.
(Source)
2. Ending Support for Older Blockchains (July 11, 2025)
What’s happening?
Tether has stopped supporting USDT on five blockchains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. These blockchains had very little USDT activity, so Tether is focusing on more widely used networks like Ethereum and Tron. Users holding USDT on these older chains were asked to move their tokens before September 1.
Why it matters:
This change helps Tether run more efficiently by reducing the number of blockchains it supports. While it may cause some inconvenience for users on the discontinued chains, it should improve overall performance and focus on stronger blockchain ecosystems.
(Source)
Conclusion
Tether’s recent updates focus on making USDT work better with Bitcoin and improving operational efficiency. The new Bitcoin-native features could change how stablecoins are used in decentralized finance by combining Bitcoin’s security with faster, private transactions. How these changes will impact the future of stablecoins and DeFi remains an exciting question.
What are people saying about USDT?
Talk around Tether USDt (USDT) mixes debates about stablecoin market share with hints of changes in liquidity. Here’s the key info:
- Traders are watching USDT dominance trends for clues about the crypto market
- Regulators are paying closer attention as Tether plans to focus more on institutional clients
- Changes in blockchain support are prompting warnings about moving funds
Deep Dive
1. @PhoenixCrypt01: USDT Dominance at a Critical Point 🌀 bullish/bearish
“$USDT.D is consolidating in a symmetrical triangle – breaking above 6.76% resistance might lead to widespread crypto selling pressure.”
– @PhoenixCrypt01 (2.2K followers · 8.2K impressions · 2025-12-20 20:30 UTC)
View original post
What this means: When USDT dominance rises, it usually means investors are moving money out of riskier assets. This could be a warning sign for alternative cryptocurrencies (altcoins) if the pattern holds.
2. @Tether_to: Ending Support on Some Blockchains 🚨 bearish
Tether announced it will stop allowing USDT redemptions on Omni, EOS, and three other blockchains by September 1, 2025, urging users to move their funds.
– @Tether_to (Corporate account · 2025-07-11 14:04 UTC)
View announcement
What this means: This is negative news for blockchains losing USDT support but positive for Tron and Ethereum, where Tether is focusing liquidity. Currently, 75.7 billion USDT are already on Tron, favored for its low transaction fees.
3. @rumble: Rumble’s USDT Creator Economy Move 🎥 bullish
Video platform Rumble has added non-custodial USDT and Bitcoin wallets to let viewers tip creators directly, supported by Tether’s $775 million investment.
– Rumble corporate update (2026-01-07 17:48 UTC)
View details
What this means: This is a positive sign for USDT adoption beyond trading, showing it’s being used for content monetization and could increase everyday retail use.
Conclusion
The outlook on USDT is mixed. Technical traders warn that rising USDT dominance could signal market downturns, while new partnerships and regulatory moves show Tether’s strong position. Keep an eye on the USDT.D (Tether Dominance Index) this week: If it stays above 6.5%, altcoins might face sell-offs; if it falls back, investors may take more risks.
Will the costs of complying with MiCA (Markets in Crypto-Assets regulation) reduce Tether’s advantage in treasury yields? The answer could change the stablecoin landscape.
What could affect the price of USDT?
Tether USDt (USDT) is facing increased regulatory scrutiny and questions about its reserves, but it remains the leading stablecoin thanks to growing use and adoption.
-
GENIUS Act Compliance (Mixed Impact)
Tether is working to meet new U.S. rules requiring stablecoins to hold all reserves in cash or cash-like assets by 2026. -
Reserve Transparency Concerns (Bearish Risk)
Without a recent audit from one of the Big Four accounting firms and with some reserves in volatile assets like Bitcoin and gold, confidence could be shaken. -
Growing Adoption (Bullish)
USDT is seeing record use in small payments, especially in emerging markets, showing it’s becoming more than just a crypto trading tool.
1. GENIUS Act Compliance (Mixed Impact)
What’s happening?
The U.S. GENIUS Act, passed in July 2025, requires stablecoins like USDT to back every coin with 100% cash or cash-equivalent reserves and undergo regular audits. Tether plans to comply by adjusting its current USDT reserves and launching a new USA₮ stablecoin. However, it needs to move about $27 billion now held in Bitcoin, gold, and loans into approved assets to meet these rules. If Tether doesn’t comply, it risks losing access to the U.S. market. (Bo Hines Says Tether’s Stablecoins to Align With GENIUS Act Rules)
Why it matters:
If Tether successfully meets these requirements, it could attract more institutional investors and strengthen USDT’s price stability. But delays or failure to adjust reserves might lead to temporary price drops or removal from some markets, similar to what happened in Europe under MiCA regulations.
2. Reserve Transparency Concerns (Bearish Risk)
What’s happening?
Tether’s reserves currently include about 5.4% Bitcoin and 8.1% secured loans. It hasn’t had an audit from a Big Four accounting firm since 2021. In 2025, S&P downgraded Tether’s rating, citing regulatory issues and unclear separation of assets. While quarterly reports from BDO Italia provide some assurance, they don’t offer real-time verification. (Tether Risk Disclosure, Bitwux Analysis)
Why it matters:
If Tether can’t prove it has enough reserves or if loans aren’t repaid, users might rush to redeem their USDT, causing price drops. In past market stress events, USDT’s price has fallen 3-5% below $1, though currently, there’s a small reserve buffer of about 3.9%.
3. Growing Adoption (Bullish)
What’s happening?
In 2025, USDT transfers under $1,000 reached $156 billion, mainly used for remittances and everyday payments in developing countries. The TRON blockchain, which supports USDT, grew to 41 million wallets this year. Overall, stablecoins handle about $192 billion daily, nearly twice the volume of the top cryptocurrencies. (Tether’s USDT Payment Stats)
Why it matters:
This growing real-world use creates steady demand for USDT, helping to keep its price stable even during regulatory uncertainty. This “velocity shield” has kept price drops under 0.3% in recent years despite negative news.
Conclusion
USDT’s price stability depends on Tether successfully meeting GENIUS Act rules without reducing its reserves, balanced by increasing adoption that supports demand. Watch for changes in early 2026 when Tether shifts more reserves into U.S. Treasuries and whether USDT maintains its dominant market share above 60%. Delays in promised audits could affect confidence and market position.
What is the latest news about USDT?
Tether USDT is making strides in regulated access and practical use, showing growth beyond just being a stablecoin.
- ADGM Approves USDT (January 8, 2026) – Abu Dhabi’s financial center now allows regulated trading and custody of USDT, opening doors for institutional investors.
- Rumble Wallet Launches (January 7, 2026) – Powered by Tether’s Wallet Development Kit, Rumble introduces a non-custodial wallet that lets users tip creators directly with crypto.
Deep Dive
1. ADGM Approves USDT (January 8, 2026)
Overview: The Abu Dhabi Global Market (ADGM) officially recognized USDT as an "accepted fiat-referenced token." This means licensed companies can now offer regulated custody and trading services for USDT across multiple blockchains, including Ethereum, Solana, Avalanche, and Aptos. This builds on ADGM’s earlier approval in December 2025 for Ethereum and Solana, showing a steady move toward clearer crypto regulations.
Why it matters: This is a positive development for USDT because it signals growing acceptance by institutional investors in regulated markets. It could increase demand from investors in the Middle East and strengthen USDT’s role in international finance. Clear regulations make it easier for businesses and investors to adopt USDT.
(CoinMarketCap)
2. Rumble Wallet Launches (January 7, 2026)
Overview: Rumble, a video platform with 68 million users, has integrated Tether’s Wallet Development Kit (WDK) to launch a non-custodial wallet. This wallet allows users to send tips directly to content creators using BTC, USDT, or XAUt, without relying on banks or payment processors. MoonPay handles the conversion between crypto and traditional money.
Why it matters: This expands USDT’s use beyond just trading, moving into content monetization. It could lead to more transactions and wider adoption. Partnering with a popular platform like Rumble highlights USDT’s growing role in decentralized payments.
(CoinMarketCap)
Conclusion
Tether’s approval in Abu Dhabi and the launch of the Rumble Wallet show its focus on both regulatory compliance and practical use. These developments could help stablecoins like USDT become more integrated into traditional finance and the creator economy.